LONDON MARKET: Government bonds set to beat the retreat
Sunday 26 September 1999
"It could well take just one more piece of data to convince the Bank of England to move interest rates higher," said Dick Howard at Julius Baer Investments. "There's not anything on the horizon that will be helpful for gilts."
The benchmark bond fell last week, though it pared losses on Friday. Ten-year yields rose five basis points to close at 5.57 per cent, though that's down from Thursday's 13-month high of 5.64 per cent. Gilts are the worst big government bond investment in the world this year, with investors losing 3.72 per cent.
Reports and surveys aren't likely to give gilt prices any relief this week, analysts say, and may prompt investors to push yields back to their recent highs.
Consumers borrowed more in August, a report is expected to show on Wednesday. Rising consumer confidence was one reason cited by the BoE for raising rates earlier this month.
BoE policy-makers also said escalating house prices helped prompt them to increase borrowing costs. On Thursday Nationwide Building Society, one of the UK's largest mortgage lenders, will release its house price index for September.
Colt Telecom and Sema may lead UK stocks higher as investors seek companies with high growth prospects, such as those in telecommunications and technology. Sema, the computer services company, may gain as investors conclude that recent price declines left shares cheap. "Every period of weakness in this sector has provided a strong buying opportunity," Dresdner Kleinwort Benson analysts said.
Bank stocks are likely to gain after the Bank of Scotland made a hostile bid for National Westminster Bank, in the biggest- ever offer for a British bank. Barclays, Abbey National and Royal Bank of Scotland all climbed on speculation of further tie-ups in the banking industry.
Marks & Spencer may finally reverse the decline that has shaved 20 per cent off its shares since 15 July. "At some stage there has got to be real value in M&S," said Simon Smith at Capel Cure Sharp. "Management is getting a grip on the business, and even if it doesn't, it'll be a takeover target."
The FT-SE 100 index fell 1.7 per cent to 5,937.6 last week.
- 1 'Kidnapped boy may have been abused and murdered by VIP paedophile ring,' say police
- 2 Ridley Scott on Exodus, Gods and Kings casting: 'I'm not going to get it financed if my lead actor is Mohammad so-and-so from such-and-such'
- 3 Girl, 7, gets Tesco to remove 'stupid' sign suggesting superheroes are 'for boys'
- 4 This letter from a reader explains why women can’t play football
- 5 'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
Black Friday 2014: Opening times for Asda, John Lewis, GAME, PC World and Argos
Miss Honduras Maria Jose Alvarado's stylist Luis Alfredo Garcia is found stabbed to death
Dr Lam Hoe Yeoh: Voyeur doctor jailed for eight years after using network of hidden cameras to film patients, colleagues and friends on the toilet
'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
Scientists predict green energy revolution after incredible new graphene discoveries
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Exclusive: UK approved £7m Israeli arms sales in six months before Gaza conflict
iJobs Money & Business
£6000 - £60000 per annum + Bonus and Benefits: Ampersand Consulting LLP: UI De...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
Negotiable: h2 Recruit Ltd: A rapidly expanding, global Software/ SaaS Vendor ...
£20000 - £25000 per annum + OTE £Competitive: SThree: SThree Group and have be...